The Worst May be Over, But Silicon Valley Bank’s Closure was Still ‘Unnerving’ for Philly’s Startup Community

By Paige Gross & Sarah Huffman

To say the tech world experienced a roller coaster of a weekend is likely an understatement.

Founders, investors and advisors watched the fallout of Silicon Valley Bank’s collapse, which started with a stock sale Wednesday and resulted in the California Department of Financial Protection shutting down the bank not even 48 hours later. The striking series of events will go down as the country’s second-largest bank failure to date, and leaves the startup community with a lot of questions.

The question of if account holders will be able to access the entirety of their funds has been answered: The Federal Deposit Insurance Corporation’s (FDIC) closure of both SVB and Signature Bank fully protects all depositors, shareholders and unsecured debt holders. Any losses to the Deposit Insurance Fund will be recovered through a special and ongoing assessment of banks.